Can you write off bad debt without going through the AR module and not use cash receipts? Will this remove it from the AR aging? Does anyone have a step by step procedure that works?
If it shows in A/R aging you have to remove it via A/R.
Typically I go to invoice data entry, create a credit memo telling it to apply to the original invoice, use a miscellaneous charge code with a g/l account set to bad debts expense. DO NOT enter as a negative amount, enter it as a positive. A credit memo is considered a negative by definition.
The easiest way is a zero cash receipt. Select the invoices and offset the bad debt expense account.
How funny. I've never used the cash receipt method for writing off a bad debt. Half an hour later, I have a client call asking about this way of doing it.
It's definitely easier than my way, however it does have the disadvantage of looking like the client actually paid it vs being written off. We are allowed a credit for bad debts writeoffs in doing our B & O and sales tax reporting in Washington, so one disadvantage of the cash receipts method is that it would not show up on the sales tax reports.
If you use something common like "WRITE OFF" for the check number then you can see all write offs during a time period with the cash receipts report.
© 2016 The Sage Group plc, its licensors or its affiliated companies. Sage, Sage logos, and Sage product and service names mentioned herein are the trademarks of The Sage Group plc, its licensors, or its affiliated companies. All other trademarks are the property of their respective owners. For more information, visit www.sage.com.
Community Terms of Service | Community Guidelines | Blog List | Community Help